Fake Refinery / Factory Scam

In commodities, legitimacy is everything. But some of the most convincing scams involve fake refineries or factories. Fraudsters build elaborate stories, websites, and even “official-looking” documents to make it appear they represent real production facilities. In reality, the refinery or factory doesn’t exist, or the scammer has no connection to it at all. Here are three common red flags, how they work, and how to protect yourself.

1. Professional-Looking Websites with No Substance

How it works:
Scammers create slick websites for a “refinery” or “factory,” complete with stock photos, fake certificates, and stolen logos. These sites often look convincing at first glance but lack verifiable details, such as full company registration, physical addresses, or traceable contact numbers.

Tips to avoid it:

  • Cross-check the company on official business registries.

  • Verify phone numbers—landlines linked to an address are safer than mobile-only contacts.

  • Look for inconsistencies (e.g., a “refinery” in Europe with a .cn or .ru domain).

2. No Verifiable Track Record

How it works:
Fraudsters claim access to massive refinery allocations or production lines but cannot provide references, trade history, or independent confirmations. They may boast about “exclusive contracts” but avoid giving client references or allow only email communication.

Tips to avoid it:

  • Request trade references from real, verifiable companies.

  • Use third-party inspection firms to confirm facilities exist.

  • Ask for basic details like VAT, chamber of commerce registration, or audited reports. If these aren’t provided, walk away.

3. Refusal to Allow Site Visits or Independent Inspection

How it works:
When pressed, scammers invent excuses why you cannot visit the refinery or factory: “security restrictions,” “COVID protocols,” or “government authorisation required.” They want to stop you from discovering that the facility doesn’t exist.

Tips to avoid it:

  • Always insist on the possibility of independent inspection by a recognised firm (SGS, Bureau Veritas, etc.).

  • Be wary of partners who avoid video calls from site or provide only staged photos.

  • If in doubt, hire a local due diligence agent to verify the site physically.

Fake refineries and factories are designed to look convincing from a distance but collapse under scrutiny. By verifying company records, demanding references, and insisting on inspections, you can expose these scams before they waste your time—or worse, cost you money.

Red Flags Ai Ltd